Schwab One Account Agreement - Charles Schwab
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October 2020 Please read this important information carefully. Schwab One® Account Agreement Information about your: • Schwab One®Account • Schwab StockBuilder Plan® • Schwab One International®Account The most recent account agreement information is available at www.schwab.com/accountagreements.
Contents
Schwab One® Account Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Schwab One® Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1. Minimum Requirements to Open an Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2. Schwab’s Cash Features Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3. Float Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4. Authorization Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
5. Services and Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
6. Returned Items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
7. When Check Deposits Are Available for Withdrawal or Transfer. . . . . . . . . . . . . . . . . 15
8. Unauthorized Wire Transfers, Missing Checks, Unauthorized Signatures
and Alterations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
9. Visa® Card, Cash Withdrawals and Check Transactions . . . . . . . . . . . . . . . . . . . . . . 16
10. Presenting Schwab One® Checks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
11. Our Liability for Failure to Complete Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . 16
12. Payment of Cash Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
13. Transferring Funds Between Schwab Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
14. Authorization to Charge Brokerage Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
15. Stop Payment Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
16. Your Right to Stop Payment of Preauthorized Transfers. . . . . . . . . . . . . . . . . . . . . . . 19
17. Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
18. Check Copies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
19. Unclaimed Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
20. Nature of Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
21. Errors or Questions About Checking Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . 20
22. Business Days. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
23. Consumer Electronic Check Representment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
24. Errors or Questions About Your Electronic Fund Transactions. . . . . . . . . . . . . . . . . . 22
25. Use of Check Images and Substitute Checks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
26. Changes to These Rights and Responsibilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
27. Refusal to Honor Checks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
28. Wire Transfers and Automated Clearing House (ACH) Transfers. . . . . . . . . . . . . . . . . 24
29. Receipt of Deposits and Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
30. Multiple Signers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
31. Check Legends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
32. Demand Drafts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
33. Stale-Dated Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
34. Postdating Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
35. Check Processing Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
36. Facsimile Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Brokerage Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
1. Provision of Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2. Disclosure of Credit Terms and Policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3. Commissions and Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
4. Rules and Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
5. Use of Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
16. Payment, Equity Deposit, Settlement and Liquidation. . . . . . . . . . . . . . . . . . . . . . . . 30
7. Payment of Indebtedness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
8. Security for Indebtedness and Right of Setoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
9. Corporate Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
10. Short Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
11. Interest on Debit Balances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
12. Pledge of Securities and Other Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
13. Loan Consent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
14. Liquidation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
15. Remittance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
16. Your Responsibility Concerning the Buy, Sale, Transfer or Deposit of Control,
Restricted, or Unregistered Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
17. Your Responsibility for Understanding Terms of Securities. . . . . . . . . . . . . . . . . . . . 35
18. Accuracy of Account Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
19. Custodial Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
20. Joint or Multiple-Party Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
21. Account Conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
22. Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
23. Approval of Application, Credit Verification and Account Information. . . . . . . . . . . . . 37
24. Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
25. Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
26. Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
27. Losses Due to Extraordinary Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
28. Phone Channel Access. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
29. Provision of Market Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
30. Non-Publicly Traded Securities and Worthless or Non-Transferable Securities. . . . . . 41
31. Order Entry Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
32. Fractional Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
33. Investment Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
34. Market and Limit Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
35. Acknowledgment of Obligations and Risks of Investing in Global Securities
Traded on Foreign Exchanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
36. No Recommendation of Day Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
37. Good-till-Canceled Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
38. Privacy Policy, After-Hours Trading and Other Terms and Disclosures. . . . . . . . . . . . 49
39. Order Routing and Execution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
40. Order Change or Cancellation Requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
41. Mutual Fund Fees, Orders, Distributions and Redemptions. . . . . . . . . . . . . . . . . . . . 52
42. Notification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
43. Trade Reports, Confirmations, Statements and Other Account-Related
Communications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
44. Cost Basis Tax Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
45. Consent to Electronic Delivery of Records and Regulatory Information . . . . . . . . . . . 54
46. Unrelated Business Taxable Income Provisions (UBTI) . . . . . . . . . . . . . . . . . . . . . . . 55
47. Monitoring of Conversations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
48. Trading or Disbursement Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
49. Multiple-Party Account Disputes, Beneficiary Disputes, and Other
Account Disputes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
50. Separability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
251. Entire Agreement, Amendment and Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
52. Certain Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
53. Disclosure of Account Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
54. Trusted Contact Person and Temporary Holds on Your Account. . . . . . . . . . . . . . . . . 57
55. SIPC Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
56. Cash-in-Lieu Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
57. Interest, Dividend and Other Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
58. Back-Up Withholding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
59. Authorizations Granted to Advisors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
60. Electronic Copies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
61. Optional Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
62. Processing and Execution of Electronic Transactions. . . . . . . . . . . . . . . . . . . . . . . . 60
63. Independent Branch Leaders Who May Service Your Account. . . . . . . . . . . . . . . . . . 60
Margin and Short Account Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Disclosure of Credit Terms and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
1. Interest Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
2. Daily Margin Interest Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3. Compounding Interest Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
4. Initial Margin Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
5. Margin Maintenance Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
6. Day Trading Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
7. Short Option Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
8. Short Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
9. Liens and Liquidation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Schwab StockBuilder Plan® . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
1. Provision of Schwab StockBuilder Plan®. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
2. Eligible Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
3. Eligible Cash Distributions for Reinvestment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
4. Dividend Reinvestment Transactions in Eligible Securities . . . . . . . . . . . . . . . . . . . . 66
5. Partial Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
6. Confirmations on Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
7. Continuing Effect of Authorization; Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
8. Automatic Dividend Reinvestment Transactions in The Charles Schwab
Corporation Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Electronic Services Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
1. Use of Electronic Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
2. Risks of Electronic Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3. Fast and Volatile Market Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
4. Financial Market Information; No Warranty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5. Limitations of Liability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
6. Consent to Email Communications and Opting Out . . . . . . . . . . . . . . . . . . . . . . . . . 71
7. Use of Proprietary Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
8. Use of Quotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
9. Order Change or Cancellation Requests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
10. No Legal or Tax Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
11. Investment Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
12. Access, Passwords and Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
13. Data Transmission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
314. Use of Software, Programs, Applications or Other Devices to Access Electronic
Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
15. Subscription, Service and Use Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
16. Account Restrictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
17. Indemnification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
18. Our Ability to Suspend or Terminate Electronic Services. . . . . . . . . . . . . . . . . . . . . . 74
19. Electronic Communications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
20. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
21. Modifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
22. Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
23. Third-Party Beneficiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Schwab One International® Account Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
1. Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
2. Minimum Initial Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
3. Administration of Foreign Currency Conversion Transactions. . . . . . . . . . . . . . . . . . . 77
4. Residency Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5. Account Control Certifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
6. Errors or Questions About Your Schwab One International® Account Transactions. . . 78
Applicability to Other Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
1. Schwab Personal Choice Retirement Account® (PCRA), Retirement Business Services
(RBS) Plan-Level Custody Account, and Health Savings Brokerage Account (HSBA). . 78
4Schwab One® Account Agreement
Introduction
This Agreement contains important terms and conditions that apply to your Schwab
One® Account. Please read this Agreement carefully and retain it for future reference.
Charles Schwab & Co., Inc. is a member firm of the Financial Industry Regulatory
Authority (FINRA). As such, we are required to inform you of the availability of a FINRA
Investor Brochure, which includes information on the FINRA Public Disclosure Program.
You may contact the FINRA public hotline at 1-800-289-9999 or on the Internet at
www.finra.org.
Summary The Schwab One® Account consists of Brokerage Services and optional check-
ing services, and a Visa® Debit Card issued by BNY Mellon Investment Servicing Trust
Company. The Visa® Debit Card terms are set forth in the Charles Schwab & Co., Inc.
Visa® Debit Card Agreement and Disclosure Statement. If you decide to become a Visa®
Debit Card holder, you will receive your Charles Schwab & Co., Inc. Visa® Debit Card
Agreement and Disclosure Statement with your new card.
You may use the Visa® Debit Card and checks to pay for goods and services or to with-
draw cash from your Schwab One® Account.
We will deduct check transactions from your Schwab One® Account in the following
manner:
• Charges will be made, first against the cash assets in your account, which may consist
of a Free Credit Balance, deposits in the Bank Sweep feature, or shares of a Schwab®
Sweep Money Fund or another Schwab Money Market Fund™; then
• If the amount of the debit exceeds your cash assets, we will extend credit to you to the
extent of the Available Margin Loan Value of your marginable securities.*
We will pay interest on your Free Credit Balance awaiting investment, and we will charge
interest on amounts you owe us.
*Customers residing within Europe are restricted from using their Available Margin Loan
Value to withdraw funds from their account.
Definitions
As used in the Schwab One® Account Agreement, the terms listed below are defined
as follows:
• Account—Account means the brokerage Account established under your Account
Application and Account Agreement.
• Accounts of Your Household—Accounts of Your Household are accounts that have been
linked in accordance with Schwab’s householding guidelines. Schwab makes a reason-
able effort to automatically link qualified accounts of persons with the same last name
at the same home address, including accounts held at certain Schwab affiliates. You
are responsible for identifying accounts that should be linked for purposes of determin-
ing Accounts of Your Household and Household Calculations.
Schwab aggregates the balances and activities of Accounts of Your Household to deter-
mine for brokerage accounts: commission rates, whether those accounts may qualify
for certain fee waivers, and whether those accounts may qualify for certain benefits or
features (“Household Calculations”).
Schwab may consider other accounts to be in your household upon your request if
account holders are in the same family, there is a dependent relationship, or in certain
5other similar instances at Schwab’s discretion. For example, if you or other members of
your family who reside at your home address have a different last name (including a
spouse, if applicable), you need to contact Schwab to request that we combine your
accounts for purposes of Household Calculations. If an account is added to the
Accounts of Your Household, any impact on Household Calculations may not take effect
until the following quarter.
• ATM Withdrawal—A transaction in which you receive money from an ATM.
• Authorization Limit—The maximum amount you may withdraw from your Schwab One®
Account using checks.
• Available Margin Loan Value—The amount of credit we may extend to you based on the
value of marginable securities held in your Margin and Short Account.
• Bank—BNY Mellon Investment Servicing Trust (IST) Company and/or its affiliates, the
entity responsible for administering the Bank Services.
• Banking Day—ATM withdrawals: The Bank uses seven Banking Days each week for
purposes of the security limits on the number and amount of withdrawals from ATMs
you can make. Banking Days begin at midnight, eastern time.
Cash advances, purchases and authorizations: The Bank uses six Banking Days each
week for purposes of the security limits on the number and amount of cash advances,
purchases and authorizations you can make. Banking Days begin at 6:00 p.m. eastern
time. The period from Friday at 6:00 p.m. to Sunday at 6:00 p.m. eastern time is
counted as one Banking Day.
• Bank Services—Checking account and Debit Card services provided by the Bank.
• Bank Sweep feature—The Cash feature through which Schwab sweeps the Free Credit
Balance in your account to deposit accounts at one or more banks affiliated with
Schwab. The Bank Sweep feature includes both the Bank Sweep and Bank Sweep for
Benefit Plans.
• Business Day—Business Day is any day that the New York Stock Exchange and the
Federal Reserve Bank of New York are open. (Although our offices may be open on
certain bank holidays, these days are not considered Business Days for purposes
relating to the transfer of funds.)
• Cash Account—The basic brokerage account we offer.
• Cash Features—Subject to eligibility requirements, the options that we offer to you for
your uninvested cash: the Schwab One® Interest feature, the Bank Sweep feature, and
the Money Fund Sweep feature.
• Day Trading—Regular transmission of intraday orders to effect both purchase and sale
transactions in the same security or securities.
• Debit Balance—An account balance representing money owed to us.
• Debit Card—The Schwab One® Visa® card is a debit card, not a credit card. This means
that purchases and cash withdrawals you make with the card will be charged against
assets in your Schwab One® Account, rather than against a line of credit extended by
the Bank.
• Electronic Fund Transfer—Any transfer of funds initiated or authorized by you through an
electronic payment system such as the Automated Clearing House (ACH) Network,
including the electronic fund transfers you can make with a Visa® Debit Card as
described in the Charles Schwab & Co., Inc. Visa® Debit Card Agreement and Disclosure
6Statement or the electronic check conversions that occur when you authorize a mer-
chant or other payee to make a one-time electronic payment from your Account using
information from your check to pay for purchases or pay bills.
• FDIC—The Federal Deposit Insurance Corporation.
• Free Credit Balance—Defined for purposes of this Agreement as the uninvested cash in
your Account, minus the following: (i) funds necessary to pay for purchase transactions
due to settle within the two Business Days after funds are eligible to be swept to a
Cash Feature; (ii) charges to your Account, including, but not limited to, Visa® transac-
tions, ATM withdrawals, Electronic Fund Transfers, wire transfers and checking transac-
tions; (iii) any unposted Visa® transactions; and (iv) credit balances that are designated
as collateral for your obligations, such as a cash balance resulting from a short sale.
Proceeds from the sale of securities will not become a Free Credit Balance until the
Business Day following settlement date. Credits that result from dividends or interest
payments, deposits, wired funds, reorganization activities or other non-trade-related
transactions will not become a Free Credit Balance until the next Business Day. In
determining whether to sweep funds through the Bank Sweep feature or Money Fund
Sweep feature, we may, but are not obligated to, offset credits and debits against
each other.
• Good Delivery—The delivery to us of freely transferable securities (that is, properly
registered, endorsed and fully negotiable stock or bond certificates).
• Household Balance—Household Balance means the total combined value, over a given
period of time, in the Accounts of Your Household, including margin balances and other
outstanding debit balances like mortgage, Home Equity Line of Credit (HELOC) and
credit card balances. For the purpose of determining commission rates and fee waivers,
Schwab adds up your daily Household Balances then divides the total amount by the
number of days in the applicable period.
• Household Calculations—Schwab’s calculation of fees, fee waivers, and other benefits
and features that apply to the Accounts of Your Household.
• Long Sale—The sale of a security that you own.
• Margin and Short Account Feature—Adding this feature to your Schwab One® Account
allows you to borrow funds from Schwab, using acceptable securities or cash as collat-
eral for the loan. You must have this feature to make short-sale transactions or to
trade options.
• Money Fund Sweep feature—The Cash Feature that sweeps the Free Credit Balance in
your Account into a Schwab® Sweep Money Fund.
• Other Property—Money, instruments (including certificates of deposit and other finan-
cial instruments) and any other property or rights.
• Schwab Account—The basic brokerage account at Schwab that allows you to buy and
sell stocks, bonds, mutual funds and other investments. This account does not include
Bank Services such as checks and Visa® .
• Schwab One® Account Agreement—The agreement you make with us and the Bank
when you open a Schwab One® Account, consisting of the Schwab One® Application,
this Schwab One® Account Agreement and any other written agreements between you
and us concerning your Schwab One® Account, all as amended from time to time.
• Schwab One® Application—The application you submit to open a Schwab One® Account.
• Schwab One® Services—The Brokerage Services and the Bank Services.
7• Schwab® Sweep Money Fund—Each of the Schwab money market funds offered as part
of the Money Fund Sweep feature.
• Securities—Securities of any kind and nature, including those you may deposit or rede-
posit with us for any reason (including safekeeping), as well as uncertificated securities,
such as money market fund shares.
• Short Sale—The sale of a security you do not own at the time the order is placed.
• Sweep—The automatic investment of a Free Credit Balance by Schwab into a Cash
Feature other than the Schwab One® Interest feature.
• Sweep Bank—An FDIC-insured depository institution that may be, but is not required to
be, affiliated with The Charles Schwab Corporation, at which interest-bearing Deposit
Accounts are maintained on your behalf.
• To close any or all transactions—To complete or liquidate any or all unsettled transac-
tions; to cancel open orders; to sell any or all long Securities and Other Property, includ-
ing options; to buy any or all Securities and Other Property that are short in the Schwab
One® Account or required for delivery against any sale order or other obligation; and to
purchase option contracts to close any outstanding short option positions.
• We/Us/Our/Schwab—Charles Schwab & Co., Inc.
• You/Your/Account Holder—Each person who signs the Schwab One® Account
Application.
Schwab One® Services
1. Minimum Requirements to Open an Account
There are no account minimums to open your account. Schwab may establish from time
to time minimum balance requirements to open an Account. The minimum deposit may
consist of a check, money order, Electronic Fund Transfer and/or marginable securities.
2. Schwab’s Cash Features Program
Schwab’s Cash Features Program is the service described in the Cash Features
Disclosure Statement that we provide to automatically invest, or “sweep,” the Free
Credit Balance in your Account into a liquid investment or to earn interest from Schwab
on the Free Credit Balance in your Account. The Cash Features Program permits you to
earn income while you decide how those funds should be invested longer term.
Cash Features refers to the following alternatives:
1. The Bank Sweep and Bank Sweep for Benefit Plans features, each of which automati-
cally makes deposits to and withdrawals from deposit accounts at one or more banks
affiliated with Schwab whose deposits are insured by the FDIC; and
2. The “Money Fund Sweep” feature automatically invests in and redeems shares of a
Schwab® Sweep Money Fund; and
3. The “Schwab One® Interest” feature pays you interest on your Free Credit Balances.
Please note that certain foreign Schwab affiliates may have different Cash Features than
the ones listed above.
Schwab can change the eligibility criteria for Cash Features on advance written notice to
affected clients, or make certain Cash Features available to clients that do not other-
wise meet published criteria.
8You will not receive a separate confirmation for transactions in your Cash Feature. Your
Account statements will reflect all transactions in your Cash Feature (including pur-
chases, redemptions, dividends, dividend reinvestments, deposits, and interest).
Changing Your Cash Feature
When you opened your Account, you either selected a Cash Feature or were informed of
the Cash Feature that was designated for your Account.
You authorize Schwab to make deposits, withdraw cash, or purchase and redeem securi-
ties in accordance with the eligible Cash Feature you have designated or the Cash
Feature that has been designated for your Account.
You can change your Cash Feature election to another eligible Cash Feature by contact-
ing Schwab.
If you request a change from one Cash Feature to one of the alternatives available to
you, Schwab will generally effect that change the following Business Day, but reserves
the right to take longer if necessary to properly process your request. This may result in
the loss of one or more Business Days’ interest or dividends. During this time, we will
earn and retain interest on your funds, generally at money market rates. See the “Float
Disclosure” section for more information.
As a condition to changing your Cash Feature, Schwab will transfer the funds in your
prior Cash Feature to your new Cash Feature. In other words, Schwab will redeem all
shares in your Schwab® Sweep Money Fund or withdraw all funds deposited at a bank
affiliated with Schwab, as applicable, and place the proceeds or the funds in your new
Cash Feature.
Changes to Your Cash Feature and the Cash Features Program by Schwab
You understand and agree that Schwab can (i) make changes to the terms and condi-
tions of our Cash Features Program; (ii) make changes to the terms and conditions of
any Cash Feature; (iii) change, add, or discontinue any Cash Feature; (iv) change your
investment from one Cash Feature to another if you become ineligible for your current
Cash Feature, your Cash Feature is discontinued, or such change is required pursuant
to any regulatory requirement; and (v) make any other changes to the Cash Features
Program or Cash Features as allowed by law. Schwab will notify you in writing of
changes to the terms of the Cash Features, changes to the Cash Features we make
available, or a change in the Cash Features Program prior to the effective date of the
proposed change.
If you become ineligible for a particular Cash Feature or if Schwab discontinues your
Cash Feature, then you authorize Schwab to designate another Cash Feature for which
your Account is then eligible and transfer the funds from the ineligible or discontinued
Cash Feature to the Cash Feature designated by Schwab for you. Schwab will notify you
in writing prior to such change. The notice will describe the new terms and conditions of
the Cash Features Program, your new Cash Feature, and the options available to you if
you do not wish to accept the new Cash Feature. If you would like to choose another
Cash Feature that is an available option, you agree to respond to us in the manner and
within the time period set forth in the notice. If you do not respond within the specified
time period, you agree that Schwab may treat your non-response as your acceptance of
the new Cash Feature. Your authorization will remain in effect until you give us notice to
the contrary. Your notice to us will not affect any obligations resulting from transactions
initiated prior to our receipt of the notice.
A change in your Cash Feature may result in the loss of one or more Business Days’
interest or dividends while your transaction is being processed. During this time, we will
9earn and retain interest on your funds, generally at money market rates. See the “Float
Disclosure” section for more information.
Bank Sweep and Bank Sweep for Benefit Plans Features
The “Bank Sweep” and “Bank Sweep for Benefit Plans” features automatically make
deposits to and withdrawals from deposit accounts at one or more banks affiliated with
Schwab as described in the Cash Features Disclosure Statement. The balances in your
deposit accounts at an affiliated bank are eligible for FDIC insurance within applicable
limits. Deposit accounts at an affiliated bank held in your Account are not eligible for
SIPC insurance.
Sweep Procedures for the Bank Sweep, Bank Sweep for Benefit Plans, and Money Fund
Sweep Features
You authorize us to act as your agent to make deposits to and withdrawals from deposit
accounts at one or more banks affiliated with Schwab or purchase and sell shares in a
Schwab® Sweep Money Fund in accordance with the Cash Features Disclosure Statement.
A Free Credit Balance of one dollar ($1) or more in your Account on any Business Day
will be swept into one or more affiliated banks or Schwab® Sweep Money Fund, as
applicable, after the close of business on that Business Day and generally will not
begin earning interest or dividends until the following Business Day. Proceeds from
the sale of securities will be swept the Business Day following settlement, provided
that the securities sold have been received in good deliverable form prior to the
Settlement Date. Schwab has sole discretion to change when and how often sweeps
occur upon advance written notice to you.
If, on any given day, the accrued daily dividend for your Schwab® Sweep Money Fund
as calculated for your Account is less than half of one cent ($0.005), your shares will
not earn a dividend for that day. In addition, if you do not accrue at least one daily
dividend of $0.01 during a pay period, you will not receive a money market dividend
for that period.
If your deposit accounts or Schwab® Sweep Money Fund, as applicable, accrue interest
or dividends, resulting from the investment of money represented by a check or other
item that is later returned unpaid, we will debit your Account for the amount of the
interest or dividends.
Money Fund Sweep Feature
The “Money Fund Sweep” feature automatically invests in and redeems shares in a
Schwab® Sweep Money Fund as described in the Cash Features Disclosure Statement.
Investments in the Schwab® Sweep Money Funds are subject to restrictions described in
the applicable Schwab® Sweep Money Fund’s prospectus. For more complete informa-
tion about a Schwab® Sweep Money Fund, including charges and expenses, read the
fund’s prospectus carefully. An investment in a Schwab® Sweep Money Fund is neither
insured nor guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
Although investments in Schwab® Sweep Money Funds provide a means of earning a
return on cash, there can be no assurance that a Schwab® Sweep Money Fund will be
able to maintain a stable net asset value of $1 per share. In the event that a Schwab®
Sweep Money Fund is no longer able to maintain the net asset value of its shares at $1,
then you authorize and instruct Schwab, without further notice to you, to redeem all of
your Schwab® Sweep Money Fund shares as soon as commercially practicable and
deposit the proceeds in your Account.
Schwab® Sweep Money Funds may, to the extent permitted by law, include money mar-
ket funds for which Schwab or its affiliates receive transaction and other fees for
10providing services (such as investment advisory, administration, transfer agency, distri-
bution, and shareholder services), and these fees will vary depending on the money
market fund (or share class) used. No portion of these fees will reduce or offset the
fees otherwise due to Schwab in connection with the Account unless required by law.
Pursuant to regulation or law, your account may be ineligible to invest in certain Sweep
Money Funds.
Schwab One® Interest Feature
The Schwab One® Interest feature pays you interest on cash awaiting investment. If you
are receiving interest from Schwab under the Schwab One® Interest feature, you agree
that the Free Credit Balance in your Account is maintained for purposes of making
investments, and not solely for the purpose of receiving such interest. Schwab reserves
the right to stop paying interest on your Account, change your Cash Feature, close your
Account, or take any other action if Schwab, in its discretion, concludes that your Free
Credit Balances are maintained solely for the purpose of receiving interest.
The Schwab One® Interest feature is subject to the terms and conditions set forth in the
Cash Features Disclosure Statement, including the manner of setting interest rates and
the crediting of interest. If, on any given day, the interest that Schwab calculates for
your Account in accordance with the foregoing is less than $0.005, you will not earn any
interest on that day.
Schwab will pay interest on remittances by check beginning on the first or second
Business Day after the check is deposited, depending on the location of your bank.
Interest will accrue even if a hold is placed on the check. However, if we have credited
your Schwab One® Account for interest on funds represented by a check or other item
that is later unpaid, we will charge your Schwab One® Account for the amount of the
interest paid.
Limited Liability
If Schwab fails to sweep, or pay interest on, your Free Credit Balance according to the
Cash Features Disclosure Statement, Schwab’s liability is limited to the actual amount
of interest or dividends you would have earned had the Free Credit Balance been
invested, deposited, or credited in the manner described in the Cash Features
Disclosure Statement.
You agree to hold us harmless if we do not make withdrawals or liquidate shares to
satisfy debits in your Account. If you intend to send funds to settle securities transac-
tions, we must receive these funds on the Business Day before the Settlement Date to
prevent an automatic redemption.
3. Float Disclosure
You agree that Schwab will retain as compensation for services your Account’s proportionate
share of any interest earned on aggregate cash balances held in Schwab’s bank account
with respect to (1) assets awaiting investment or (2) assets pending distribution from your
Account. Such interest retained by Schwab shall generally be at money market rates.
Assets awaiting investment or deposit include: (1) amounts deposited by you into your
Account; and (2) any other uninvested assets held by your Account caused by an autho-
rized instruction to Schwab to purchase or sell securities (which may, after the period
described below, automatically be swept into a Schwab® Sweep Money Fund or deposited
into a Sweep Bank). With respect to such assets awaiting investment or deposit:
(i) where such assets are received by Schwab on a Business Day and before deposit
cutoff time for the local Schwab Investor Center with which the funds are deposited, such
interest may be earned by Schwab through the beginning of the following Business Day;
11(ii) where such assets are received on a day which is not a Business Day, or where such
assets are received after the local Schwab Investor Center’s deposit cutoff time, such
interest may be earned through the beginning of the second following Business Day.
When Schwab receives a request for a distribution from your Account, Schwab generally
processes the request within two or three Business Days (unless the distribution is in
connection with an unusual event such as death or divorce, in which case it generally will
take longer to process the request). On the same day that the processing is completed,
the amount of the distribution will be debited from your Account. The distribution check
will be written and mailed on the following Business Day. You agree and acknowledge that
Schwab will earn interest beginning on the date your Account is debited and ending on the
date the check is presented for payment, the timing of which is beyond the control of
Schwab. Upon request, Schwab will provide you a verbal update to determine the status of
your outstanding distribution checks.
If you request a Schwab MoneyLink®transfer from your Account to another financial institu-
tion: (i) the amount of the transfer will be debited from your Account on the day that the
transfer process is commenced; (ii) the funds will be received by the other financial institu-
tion within one to two Business Days of the date the transfer process is commenced; and
(iii) you agree and acknowledge that Schwab may earn interest on that amount beginning on
the date your Account is debited and ending on the date the Electronic Fund Transfer is
received by the other financial institution and thereby debited from Schwab’s bank account.
If you choose to change your Cash Feature from one Cash Feature to another, or if
Schwab changes your Cash Feature from one Cash Feature to another, you will generally
stop earning interest or dividends, as the case may be, on the day of your request. If you
or Schwab designate a new Cash Feature before the close of business on a Business Day,
your Free Credit Balances will be swept to your new Cash Feature after the close of busi-
ness that Business Day, and generally will begin earning dividends or interest, as the case
may be, on the following Business Day. If you or Schwab designate a new Cash Feature
after the close of business or on a non–Business Day, your Free Credit Balances will be
invested or deposited into your new Cash Feature after the close of business on the next
Business Day, and generally will begin earning dividends or interest on the Business Day
following the next Business Day. If you request that Schwab automatically send dividends,
interest, or other payments directly to you, and the Account has a Schwab® Sweep Money
Fund as a Cash Feature, net payments will not accrue interest between the time they are
credited to the Account and the time they are disbursed to you.
4. Authorization Limit
The Authorization Limit is the maximum amount you may withdraw from your Schwab
One® Account using your checks, ACH or Electronic Fund Transfers. Schwab may put a
hold on funds in your Account or otherwise restrict withdrawals or transfers from the
account to a limit that is lower than the Authorized Limit, if there is risk of fraudulent,
unusual or unauthorized activity based on certain parameters established by Schwab.
Your Authorization Limit is calculated each Business Day and is the sum of:
• Your Free Credit Balance, the value of any Schwab® Sweep Money Fund, and the value
of cash balances deposited in a Sweep Bank in your Schwab One® Account; plus
• The Available Margin Loan Value of the marginable securities held in your Margin and
Short Account;* minus
• The amount of any Visa® drafts that have been authorized but not yet paid; and
* Customers residing within Europe are restricted from using their Available Margin Loan
Value to withdraw funds from their account.
12• The amount required to settle any pending securities purchases in your Margin Account;
and
• Accrued margin interest that has not yet been posted to your Account; and
• Deposits received by us for credit to your Schwab One® Account on which a hold (as
described in Section 7) has been imposed.
Proceeds of the sale of securities will not be included in the Authorization Limit until the
Business Day after settlement date.
5. Services and Fees
Enrollment in a Service
Schwab offers a number of account types, service features and benefit packages, each
of which is referred to as a “Service” for purposes of your Account Agreement. Each
Service can have unique fees and additional terms and conditions. By enrolling in a
Service or otherwise using a Service and not discontinuing your enrollment in that
Service, you agree to abide by the terms and conditions or supplemental agreement
(“Terms of Service”) applicable to such Service, in addition to this Account Agreement.
Householding Guidelines
Unless you notify Schwab otherwise, Schwab will make a reasonable effort to link quali-
fied accounts of persons with the same last name at the same home address. Schwab
may link other accounts upon your request if account holders are in the same family,
there is a dependent relationship, or in certain other similar instances at Schwab’s
discretion. Certain accounts may not be eligible for linking. The assets of linked
accounts are not commingled, and all clients linking accounts retain control over, and
responsibility for, their individual accounts.
Schwab is not responsible for identifying accounts that are eligible to be linked for pur-
poses of determining the Accounts of Your Household. It is the obligation of fiduciaries
to notify Schwab of accounts that should not be linked. You agree to contact Schwab if
you are acting in a fiduciary capacity and want your fiduciary account aggregated as part
of the Household Calculation or excluded from the Household Calculation. You may con-
tact Schwab or your independent investment advisor (“advisor”) for more information or
to give Schwab instructions with respect to linking eligible accounts.
Certain fees and other items relating to your account are calculated by considering (i.e.,
aggregating) activities and balances in the Accounts of Your Household. You acknowl-
edge and agree that it is your responsibility to review the applicable Pricing Guide or fee
schedule and your account statements, and to consult with other members of your
household who may have accounts with Schwab to determine whether Schwab should
update or change its Household Calculations. While Schwab will make a good faith effort
to identify and consider on its own the Accounts of Your Household in order to calculate
any potentially applicable fee waivers, you acknowledge and agree that Schwab is not
responsible for any claimed error in making Household Calculations if you fail to contact
Schwab with concerns or questions about how Schwab is making Household
Calculations. If there are other holders of Accounts of Your Household, you understand
and acknowledge that Schwab may use general information about your Household
Balance and activities to provide or explain Household Calculations or Services available
to you and those other holders of Accounts of Your Household. If you do not want your
account data included with data from other Accounts of Your Household for such pur-
poses, you agree to contact Schwab.
Fees and Incorporation of the Pricing Guides
Fees for particular Services and Accounts are generally set forth in a pricing guide or fee
schedule, such as the Charles Schwab Pricing Guide or other pricing guide Schwab may
13provide as applicable to your account (collectively, the “Pricing Guides,” and individu-
ally, a “Pricing Guide”). The Pricing Guides are companions to this Account Agreement
and are incorporated as part of this Account Agreement.
You agree to pay the Service fees as well as other fees that apply based on your trans-
actions, activities and requests, as set forth in the Pricing Guide applicable to your
account or as Schwab otherwise informs you. These other fees can include, but are not
limited to, the following:
• Commissions, transactions (including mutual funds) and order handling fees;
• Account service fees;
• Cashiering services;
• Custody of certain assets;
• Reports relating to your account requested by you or that are required by law;
• Fees associated with transactions in Schwab proprietary non-sweep money funds;
• Termination and transfer fees; and
• Charges for failing to maintain minimum balance requirements.
Some Services have a special fee schedule that is not included in the applicable Pricing
Guide. If so, Terms of Service that you receive at the time you receive or enroll in the
Service will include that additional pricing information. You agree to review the Terms of
Service and not to use or not to continue use of the Service if you do not agree to pay
the applicable fees.
You agree to pay all applicable fees, as well as any applicable federal, state and local
taxes. Schwab’s failure to deduct fees from your Account at the time you incur those fees
does not waive Schwab’s right to deduct those fees from your Account at a later time.
Schwab can modify a Pricing Guide or fee schedule applicable to a Service at any time.
Schwab will provide notice to you of any change in fee or new fee applicable to you in
accordance with applicable laws and regulations. Your continued use of your Account or
a Service following such a change in fee or new fee will evidence your consent.
Some fees may be charged to a debit or credit card. By authorizing Schwab to charge a
debit or credit card, you are authorizing Schwab or its respective designated representa-
tives or agents to automatically continue charging that card (or any replacement credit
card account if the original card is renewed, lost, stolen or changed for any reason by
the credit-issuing entity, and such entity informs Schwab of such new replacement card
account) for all fees and charges associated with your transactions or the products or
Services you receive.
Schwab reserves the right, but has no obligation, to negotiate different prices or
arrangements than those described in a Pricing Guide or elsewhere with account holders
and with unaffiliated third parties acting as agents for certain account holders.
Transfer (Out) Fee and Account Minimums
Schwab can charge a fee when you request a transfer of assets from the Account to
another financial institution (a “TOA”), as set forth in the applicable Pricing Guide or fee
schedule. A TOA occurs when you request (either personally or through another financial
institution) that Schwab transfer securities or cash out of the Account. A TOA of all the
assets in the Account is a “full TOA”; a TOA in any amount less than this is a “partial
TOA.” You may obtain a copy of the applicable Pricing Guide or fee schedule by calling
1-800-435-4000, or if your Account is managed by an independent investment advisor,
please contact your advisor directly, or call Schwab Alliance at 1-800-515-2157. Schwab
14reserves the right to later charge fees or waive the minimum or fees on any account in
circumstances that we deem appropriate.
If your Account falls below the minimum value required to open that account, you autho-
rize us to take such actions as are appropriate, in our discretion, to close your Account.
Unless there is no balance in your Account, you will be given notice prior to our closing
your Account. You authorize us to liquidate shares of any security, including, but not
limited to, shares of any mutual funds or other entities whose shares are in a continu-
ous offering (“funds”) held for you that are not transferred to the issuer for any reason.
Upon closing your account, we will either mail to you certificates or request a book-entry
statement from the agent for non-fund securities held for you (if the physical certificates
are being issued and transferred by the company and/or the Transfer Agent) or a check
reflecting the cash balance in your account at the time it is closed, or both, in our sole
discretion. If, after your Account is closed for any reason, Securities or Other Property
from any source are credited to your Account, you authorize us to mail to you either
certificates for non-fund securities or a check reflecting the cash balance in your
Account, or both. In computing the cash balance of your Account at the time it is closed,
we reserve the right to deduct any unpaid fees or charges (including account service
fees), a certificate processing fee or other charges related to closing your Account. You
agree not to hold us responsible for any losses incurred in connection with the closing
of your Account.
If you do not maintain a positive Authorization Limit, we may terminate the Schwab
One® Account Services described in Sections 1–36 of the Schwab One® Services por-
tion of this document, convert your Account to the Schwab Account or take other action
which in our sole discretion we deem appropriate.
6. Returned Items
If transactions in your Account reduce your Authorization Limit below zero, we will return
your check, ACH or Electronic Fund Transfer unpaid or decline the Visa® authorization.
We will charge a fee for any check or Electronic Fund Transfer we return unpaid.
7. When Check Deposits Are Available for Withdrawal or Transfer
When you deposit checks in your Schwab One® Account, they will become available for
withdrawal according to our availability schedule. Details of the schedule are available
by logging in to your Schwab Account at www.schwab.com, calling us or stopping by a
branch. However, even when deposited funds are not available for withdrawal, you will
receive interest or dividends on these held funds according to Section 2. At our discre-
tion, funds represented by the check also may be unavailable for settlement of securi-
ties transactions during the hold period.
We reserve the right to redeposit any checks that do not clear the first time due to
insufficient funds, or any other reason, with or without prior customer notification.
8. Unauthorized Wire Transfers, Missing Checks, Unauthorized Signatures
and Alterations
You must promptly examine your statement upon receipt. If you find that your records
and ours disagree, or if you suspect that a wire transfer is unauthorized or a check or
an endorsement is altered or forged, call us toll-free at once at 1-800-421-4488. You
must also report missing or stolen checks to us immediately by calling the same num-
ber. Or you may write to us at: Charles Schwab & Co., Inc., P.O. Box 982600, El Paso,
TX 79998-2600.
If you do not notify us in writing of the suspected unauthorized wire transfer, forgery,
alteration or fraudulent check transaction promptly, but in no event later than 10
15calendar days after we send or make available to you notice of the transaction or your
Account statement, whichever is received first, you agree that the statement activity and
your Account balance are correct for all purposes with respect to those transactions and
waive all claims against Schwab to recover any losses resulting from said unauthorized
wire transfer, forgery, alteration or fraudulent check.
If you report to us that an unauthorized wire transfer, forgery, alteration or other unau-
thorized check transaction has occurred on your Account, you agree to cooperate with
us in the investigation of your claim. This includes giving us an affidavit containing what-
ever reasonable information we require concerning your Account, the wire or check
transaction and the circumstances surrounding the loss.
You agree that we have a reasonable period of time to investigate the facts and circum-
stances surrounding any such claimed loss and that we have no obligation to provision-
ally credit your Account.
9. Visa® Card, Cash Withdrawals and Check Transactions
On approval of your request, you will be sent checks and a Visa® Debit Card in accor-
dance with your instructions. Schwab can charge transaction and processing fees that
we deem appropriate. The Visa® card will remain the property of the Bank and may be
canceled anytime, or not be reissued, by the Bank or Schwab without prior notice. By
using your Visa® Debit Card, you agree to be legally bound by the terms and conditions
set forth in the Charles Schwab & Co., Inc. Visa® Debit Card Agreement and Disclosure
Statement, which accompanies your new card.
If the check feature is terminated, your Visa® card is automatically canceled.
Note: Any Schwab One® customer who lives outside the United States and would like a
Visa® Debit Card must open a Schwab One International® Account.
10. Presenting Schwab One® Checks
Although Schwab One® checks are payable through the Bank, check cashing at the
Bank’s branches is not permitted. You should not expect the Bank to cash your Schwab
One® checks as the Bank would a BNY Mellon check. Negotiate Schwab One® checks at
the bank where you maintain your personal bank account.
11. Our Liability for Failure to Complete Transactions
If we do not complete a transaction to or from your Account on time or in the correct
amount according to our agreement with you, we may be liable for your losses or dam-
ages. However, in no event shall Schwab be liable for any special, indirect or consequen-
tial damages, even if we have been informed of the possibility of such damages.
There are some exceptions. (There may be other exceptions not specifically mentioned
here.) We will not be liable, for instance, if:
• The Authorization Limit in your Schwab One® Account is not enough to cover the
transaction.
• Circumstances beyond our control (such as fire or flood) prevent the transfer, despite
reasonable precautions that we have taken.
• Incorrect Electronic Fund Transfer instructions are provided to us by another institution.
• Any Electronic Fund Transfer, Automated Clearing House Network or any other third-
party communication system from which Schwab requires information to complete
transactions was not working properly.
16• Your Schwab One® Account is restricted (because of a court order or similar reason) and
we are not permitted to make the transaction.
• An error in posting an amount or transaction occurs that is beyond our control.
12. Payment of Cash Transactions
Schwab One® cash transactions such as Visa® drafts, Electronic Fund Transfers and
checks are processed according to Schwab’s and its agents’ authorization and banking
procedures. Visa® drafts, Electronic Fund Transfers and ATM Withdrawals are paid and
charged against the cash assets in your Schwab One® Account (which may be a Free
Credit Balance, the proceeds of redemption of shares of a Schwab® Sweep Money Fund
or another Schwab Money Market Fund™ , or the proceeds of a withdrawal from the Bank
Sweep feature). To the extent the debit exceeds your cash assets, we will extend credit
to you up to the amount of your Available Margin Loan Value. Such margin loans will be
subject to all terms contained in our Disclosure of Credit Terms and Policies.
Customers residing within Europe are restricted from using their Available Margin Loan
Value to withdraw funds from their account.
13. Transferring Funds Between Schwab Accounts
To transfer funds from your Schwab One® Account to another Schwab brokerage
account, Individual Retirement Account (IRA) or Qualified Retirement Plan (QRP)/Keogh
Brokerage Account in your name, you may write a letter of authorization specifying the
account numbers involved and the amount you would like transferred.
You may also write a Schwab One® check, payable to the name of the account to which
you would like the funds transferred, or to Charles Schwab & Co., Inc. You must desig-
nate on the check the account number to which you would like these funds deposited. In
certain situations, Schwab may accept verbal instructions or other non-written authoriza-
tion to initiate transfers between Schwab accounts.
14. Authorization to Charge Brokerage Accounts
You authorize us to charge your Schwab One® Account for the amount of your Visa®
drafts, ATM withdrawals, Electronic Fund Transfers and check transactions. If there is
more than one account holder, you authorize us to pay funds on the authority of only
one account holder’s signature.
By completing the appropriate section of your Schwab One® Application, you may autho-
rize another person (who is not an account holder) to sign Schwab One® checks. To
revoke such authorization, you must give us written notice and return to us the checks
given to the additional authorized user. You will be responsible for all check transactions
made by any authorized person and for all Visa® transactions made by any person you
have permitted to use your Visa® card, card number or PIN, even if the amount of actual
use exceeds your authorization or permission.
15. Stop Payment Orders
If a check you have written has not yet been paid from your account, you may request a
stop payment by writing to:
Charles Schwab & Co., Inc.
P.O. Box 982600
El Paso, TX 79998-2600
Or by calling toll-free: 1-800-421-4488.
If you call, we may also require you to put your request in writing and get it to us within
14 days after the call. Stop payment orders processed prior to 5:00 p.m. eastern time
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